QXO Sees Unusually Large Options Volume (NYSE:QXO)

Key Points

• Investors bought 48,052 QXO call options on Wednesday, about 82% above the stock’s typical call-option volume.
• QXO shares rose 5.9% to $12.40, though they remained well below their 52-week high of $27.61.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $24.77; the company’s latest quarterly revenue topped estimates while EPS matched expectations.

QXO, Inc. (NYSE:QXO - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 48,052 call options on the stock. This is an increase of approximately 82% compared to the typical volume of 26,427 call options.

Analyst Ratings Changes

Several research firms have issued reports on QXO. Benchmark reaffirmed a "buy" rating on shares of QXO in a research note on Friday, August 14th. Morgan Stanley started coverage on shares of QXO in a research report on Tuesday, August 4th. They issued an "overweight" rating and a $35.00 price objective for the company. Citigroup reduced their price objective on shares of QXO from $28.00 to $25.00 and set a "buy" rating on the stock in a research note on Monday, July 13th. Weiss Ratings restated a "sell (d)" rating on shares of QXO in a research report on Wednesday, August 26th. Finally, DA Davidson set a $20.00 price target on QXO in a report on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, QXO currently has an average rating of "Moderate Buy" and a consensus target price of $24.77.

QXO Trading Up 5.9%

Shares of QXO stock traded up $0.69 on Wednesday, reaching $12.40. 8,725,114 shares of the stock were exchanged, compared to its average volume of 16,363,923. The company has a quick ratio of 3.29, a current ratio of 4.11 and a debt-to-equity ratio of 0.66. The stock has a market cap of $12.87 billion, a P/E ratio of -13.77, a price-to-earnings-growth ratio of 2.61 and a beta of 2.42. The firm has a 50 day moving average of $11.86 and a two-hundred day moving average of $17.21. QXO has a 1-year low of $10.03 and a 1-year high of $27.61.

QXO (NYSE:QXO - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.08 EPS for the quarter, meeting the consensus estimate of $0.08. QXO had a negative net margin of 5.17% and a positive return on equity of 2.41%. The firm had revenue of $3.25 billion for the quarter, compared to analyst estimates of $3.18 billion. On average, research analysts anticipate that QXO will post 0.22 EPS for the current year.

Hedge Funds Weigh In On QXO

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Finepoint Capital LP raised its holdings in shares of QXO by 30.7% during the second quarter. Finepoint Capital LP now owns 18,113,850 shares of the company's stock worth $313,007,000 after acquiring an additional 4,255,435 shares in the last quarter. Fort Washington Investment Advisors Inc. OH raised its position in shares of QXO by 25.9% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 5,703,964 shares of the company's stock valued at $66,679,000 after purchasing an additional 1,173,274 shares during the period. Spyglass Capital Management LLC acquired a new position in QXO during the 2nd quarter worth $62,961,000. CI Investments Inc. boosted its stake in QXO by 4.1% during the 1st quarter. CI Investments Inc. now owns 2,598,840 shares of the company's stock valued at $50,469,000 after purchasing an additional 102,838 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of QXO in the second quarter worth $44,919,000. 58.68% of the stock is owned by hedge funds and other institutional investors.

About QXO

QXO, Inc is a building products distribution company serving professional contractors and other customers in the construction industry. Its product offerings include roofing materials, siding, windows, doors, insulation and related exterior building products.

The company operates through a network of distribution locations in the United States and Canada, providing materials, delivery services and product support to contractors and other building-industry customers. QXO's strategy is focused on expanding its presence in the building products distribution market through organic growth and acquisitions.

QXO was formerly known as SilverSun Technologies, Inc and adopted the QXO name as part of a strategic transformation led by investor Brad Jacobs.

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